Replacement Land Compensation Tax Calculator

Replacement Land Compensation Tax Calculator helps estimate Korea-related property tax, capital gains, gift, inheritance, exemption, or transfer scenarios in English.

Replacement land compensation tax calculator

Uses the Korean replacement-land compensation model for cash compensation, 40 percent replacement compensation reduction, tax deferral, special rural tax, eligibility, and present-value comparison.

Korean source inputs

Recommended option

Deferral

Eligible for replacement-land relief.

Capital gain

₩690,000,000

Tax base ₩521,900,000.

Replacement amount

₩600,000,000

60% of total compensation.

Reduction scenario tax

₩152,104,140

Reduction ₩54,977,400.

Deferral scenario tax

₩70,737,588

Deferred tax ₩109,954,800.

Net deferral benefit

₩20,174,786

Positive means deferral has lower present-value cost.

This English calculator calls the same pure Korean calculation function used by the Korean page. Inputs and labels are translated; the formula is not replaced by a generic stub.

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Replacement land compensation tax calculator

This page follows the Korean replacement-land compensation calculator for expropriated land, replacement compensation, immediate reduction, tax deferral, public-project cash compensation, and cap limits.

Replacement compensation rule

The Korean source cites Special Tax Treatment Restriction Act Article 77-2, Article 77, and Article 133. Replacement compensation can compare a 40 percent capital-gains-tax reduction with a tax-deferral scenario.

Eligibility depends on land acquired at least 2 years before project approval and transferred by 2026-12-31. The calculator separately checks business-use land, project-timing eligibility, transfer deadline, farmland status, and replacement compensation ratio.

Cash and bond compensation

For public-project compensation, the cash compensation reduction is 15 percent after the 2025-03-14 amendment. Bond compensation branches can be higher: ordinary bonds 20 percent, 3-year bonds 35 percent, and 5-year bonds 45 percent in the translated source content.

The comprehensive reduction cap is modeled around KRW 100 million per year and KRW 200 million over 5 years. Prior reductions in the same year can reduce the available benefit, so the English calculator keeps prior reduction as an input.

Reduction versus deferral

Immediate reduction lowers current tax, while deferral pushes tax into the replacement asset exit and can have a present-value advantage. The Korean model compares immediate tax, deferred tax, and net deferral benefit using the selected discount rate.

Because calculateReplacementLandTax is reused directly, the English result preserves capital gain, taxable base, replacement amount, reduction scenario, deferral scenario, special rural tax, and eligibility notes from the Korean implementation.